1900-1906 Hyde Street Offering Memorandum

Multifamily Investment Opportunity | Russian Hill - San Francisco, CA

1900-1906 HYDE STREET Offering Memorandum - pg. 1 Table of Contents Offering Summary...... 3-4 Financial Overview...... 5-6 Property Photographs...... 7-10 Amenities Map & location...... 11 Public Transportation...... 12 Aerial of subject property...... 13

Showing Schedule Tuesday March 17, 2019 - 9:00 AM to 10:30 AM Tuesday March 24, 2019 - 9:30 AM to 11:00 AM Tuesday March 31, 2019 - 9:30 AM to 11:00 AM

Call for Offers To be determined.

Colliers International 101 2nd Street, 11th Floor San Francisco, CA 94105

Brad Lagomarsino | lic 01058500 +1 415 288 7848 | [email protected]

James Devincenti | lic 00951916 +1 415 288 7848 | [email protected]

www.theDLTeam.com Offering Summary - Overview

Russian Hill is a quaint, upscale residential community known for the famously crooked Lombard Street, a major tourist destination. The iconic San Francisco cable cars crest the neighborhood’s hills, which provide views of the City’s many landmarks, including the Golden Gate and Bay bridges. Commercial stretches along Polk and Hyde Streets offer an as- sortment of trendy and old-school restaurants, bars and shops.

1900-1906 Hyde Street, San Francisco, is a 7-unit mixed-use, apartment building located walking distance to the Central Business District and the shops and eateries on both Polk & Union Streets. This corner, Mediterranean style building has been immaculately maintained and possess’ many of the quality finishes from its era of construction. The building is comprised of 6-1-bedroom apartments plus a commercial unit. Oversized wood frame, windows with“Juliet balconies” draw extraordinary natural light into these gorgeous apartments.

This is a fantastic opportunity for an investor to purchase a “pride of ownership” asset, in one of the most coveted areas of the City.

1900-1906 HYDE STREET Offering Memorandum - pg. 3 Offering Summary - Property Details

Property Information Common Areas Contd... Address: 1900-1906 Hyde Street, San Francisco (Green & Windows in common area: Wood-frame and a leaded glass Union Streets) window District: Russian Hill Garbage: Located in garage Property Type: Mixed-use, apartment building (6-1-bedroom/1 Security: 4-camera system located in bath apartments, 1 commercial) garage APN: 0122-014 Building Square Feet: 4,815 square feet Building Composition Lot Size: 1,537 square feet (per tax record) Building Composition: 6-large 1 bedroom/1 bath apart- Floors: 3 Floors over Lobby and Garage ments, 1 commercial Laundry/ Cleaners (6-large 3 room apart- Constructed: 1908 ments and 1-commercial space), Zoning: NC-1 3- car parking

Kitchens: Original wood cabinetry (ample Building Systems storage) Foundation: Brick foundation Tiled counters and surrounds Structure: Wood-frame building Large single basin sinks Soft Story: Building is not compliant with the soft-story Gas stoves & ovens ordinance Freezer over refrigerator Façade: Stucco exterior Eat-in Kitchens Roof Composition: EPDM roof System Linoleum floors, ceramic Electrical Service: Separately Metered, 200AMP Gas Service: Separately metered Bathrooms: Hex-tile floors Elevator: None Separate shower and bath tub Fire Protection System: Hard-Wired Firelite MS2 fire detection system in common areas (battery operated CO2/Smoke Pedestal sink and mirrored detectors in apartments) vanity cabinet Heat Source: Electric wall heat system Linen storage Hot Water: 2 X 50-gallon Bradford & White Storage Tanks Plumbing Mix of copper & galvanized Bedrooms: Hardwood floors Circuit Breakers: At main service (tradesman) Large Bedroom Area Common Area Lights: Timer system Ample Closet Space Wood frame Windows - Common Areas phenomenal natural light Style Mediterranean style building with wrought iron “Juliet balconies” Living Room Areas:: Hardwood floors Mail Boxes: At building entry Ample electrical outlets Front Landing: Marble tile Wood frame Windows - Door Entry System: Siedle entry system phenomenal natural light Portico: Brick decorative tiled entry 2 Closets in the living area Stairs: Decorative tile phenomenal natural light Lobby Lighting: Sconce lighting system in lobby Landing Areas: Decorative tile and dome center mounted light- Miscellaneous: Approximately 500 square foot ing fixtures on floors commercial laundry and cleaning Windows: Large, beautiful, wood-frame windows through- facility (depot only). out

1900-1906 HYDE STREET Offering Memorandum - pg. 4 Financial Overview 1900-1906 Hyde Street, San Francisco, CA 94109

Financial Summary Annual Gross Income Current Market Sale Price $3,865,000 Gross Potential Income $241,307 $293,400 Down Payment $1,465,000 Vacancy (3.5%) $8,446 $10,269 Number of Units 7 AGI $232,861 $283,131 Price/Unit $552,143 Expenses $78,259 $80,343 Gross Square Feet 4,815 NOI $154,602 $202,788 Price/Square Foot $803 CAP Rate-Current 4.00% CAP Rate-Pro Forma 5.25% Annual Operating Expenses Current Market GRM-Current 16.02 Property Taxes $45,611 $45,611 GRM-Pro Forma 13.17 *Special Assessments $1,140 $1,140 Year Built 1908 Insurance $3,540 $3,540 Lot Size 1,537 PG&E $1,864 $1,864 Water $2,371 $2,371 Trash Collection $5,004 $5,004 Repairs, Cleaning & Maintenance $5,577 $5,577 *Management Fee $9,652 $11,736 *Reserves $3,500 $3,500 Total Operating Expenses $78,259 $80,343

Expenses are estimated (Management Fee Est. at 4% of Gross Income /Reserves est. at $500 per unit / Special Assessment tax est. at 2.5% of Property Tax Financing Loan Amount $2,400,000 Cash Flow After Debt Service Current Market Loan Type Proposed New Less Debt Service $94,000 $94,000 Interest Rate 3.25% Cash Flow $60,602 $108,788 Program 5 Year Fixed Cash on Cash Return 2.61% 4.69% Loan to Value 62% Expenses as % of Gross 32% 27% Quote: Quote: First Republic Bank /5 Year Fixed - 3/5/2020 Expenses per Unit $11,180 $11,478 (Borrower to having banking relations with FRB)

1900-1906 HYDE STREET Offering Memorandum - pg. 5 Financial Overview (cont.) 1900-1906 Hyde Street, San Francisco, CA 94109

Rent Roll

Unit No. Unit Type Current Rent Parking Market Rent Move in Date Notes

1 1 bedroom, 1bath $3,231.48 $275.00 $3,275.00

2 1 bedroom, 1bath $3,275.00 $3,275.00 Vacant

3 1 bedroom, 1bath $3,180.60 $3,275.00

4 1 bedroom, 1bath $1,203.54 $3,275.00

5 1 bedroom, 1bath $3,360.15 $250.00 $3,275.00

6 1 bedroom, 1bath $3,175.00 $3,275.00

7 Commercial $2,158.14 $3,600.00 Approx 600 sq ft (TBD)

Monthly Income $19,583.91 $525.00 $23,250

Assumes 1 parking Parking $525.00 $1,200 included in rent

Monthly Income $20,108.91 $24,450

Annual Income $241,307 $293,400 Upside 22%

Units Notes 1 Bedroom - 6 Projected rents based on highest current rent for unit Commercial - 1 Retail projected at $6.00 per square Foot Total - 7 Parking - 3 Projected parking based on $400 per space

1900-1906 HYDE STREET Offering Memorandum - pg. 6 1900-1906 HYDE STREET Offering Memorandum - pg. 7 1900-1906 HYDE STREET Offering Memorandum - pg. 8 1900-1906 HYDE STREET Offering Memorandum - pg. 9 1900-1906 HYDE STREET Offering Memorandum - pg. 10 Amenities 1900-1906 Hyde Street, San Francisco, CA 94109

8 7 25 24 Subject Property 23 1 1900-1906 Hyde St 2 29 3 10 21 9 4 30 5 11 12 6 22 13

18 17 19

15 20 31 26 Subject Property 1900-1906 Hyde St

California + Pacific Medical N 27 X Restaurants & Bars X Convenience & Grocery Stores X Banks & ATM’s Neighborhood Amenities 1 Elephant Sushi 9 La Folie 17 Shanghai Kelly’s 25 Searchlight Market

2 Za Pizza 10 Mexcalito 18 Lord Stanley 26 J & H Grocery

3 Frascati 11 Wood’s Polk Station 19 Ristorante Milano 27 Trader Joe’s

4 Seven Hills 12 Blue Barn 20 Cocotte 28 Le Beaue Market

5 Amarena 13 Kinjo 21 Helmand Palace 29 Bank of America

6 The Soap Box cafe 14 Wasabi & Ginger 22 Matterhorn Restaurant 30 Wells Fargo Bank

7 Abrazo 15 Harris’ 23 Black Horse London Pub 31 Sterling Bank

8 Sumac Istanbul 16 House of Prime Rib 24 Leopold’s 32 Citi Bank

1900-1906 HYDE STREET Offering Memorandum - pg. 11 Public Transportation 1900-1906 Hyde Street, San Francisco, CA 94109

30X BROADWAY ST/VAN NESS AVE

10 12 PACIFIC AVE

41 45 UNION ST

8 30 4530 STOCKTON ST

CLAY/SACRAMENTO ST (to Hwy 101 & 1 Marin County) Washington Square Bart & Muni Metro Subject Property 1900-1906 Hyde St POWELL ST STATION MONTGOMERY ST STATION EMBARCADERO ST STATION CIVIC CENTER STATION

POWELL/MASON CABLE CAR (to Market St / Union Square /Bart & Muni)

HIGHWAY ACCESS VIA VAN NESS AVE

Lafayette Park

With Immediate Access to One of the Nation’s Best Public Transit Systems

The area around 1900-1906 Hyde Street offers an extensive transportation network which ensures superior regional access throughout San Francisco and the surrounding Bay Area. Atlantic Cities’ “Access Across America, Transit 2018” ranked San Francisco second only to Manhattan for public transit efficiency, based on how many jobs a resident can access within a 10 to 30 minute commute during the morning rush hours of 7am to 9am. 1900-1906 Hyde Street is within walking distance of a variety of public transit, including the Civic Center/UN Plaza Bay Area Rapid Transit System (BART) station, the underground MUNI, and street-level rail—all in addition to a variety of San Francisco’s caravan of ‘Tech Shuttles’ moving busloads of Google, Genentech, Facebook, and Apple employees from their homes in San Francisco to their job centers in Silicon Valley.

1900-1906 HYDE STREET Offering Memorandum - pg. 12 Aerial Map 1900-1906 Hyde Street, San Francisco, CA 94109

Subject Property 1900-1906 Hyde St

Confidentiality & Disclaimer Statement

This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 1900-1906 Hyde Street San Francisco, CA 94109. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by 1900-1906 Hyde Street from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from 1900-1906 Hyde Street you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of 1900-1906 Hyde Street or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date of this Offering Memorandum.

1900-1906 HYDE STREET Offering Memorandum - pg. 13 Multifamily Investment Opportunity | Russian Hill - San Francisco, CA 1900-1906 Hyde Street Offering Memorandum

Brad Lagomarsino | lic 01058500 James Devincenti | lic 00951916 +1 415 288 7847 | [email protected] +1 415 288 7848 | [email protected]